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Schlatter was born in Englewood, New Jersey. Growing up in Fair Lawn, New Jersey, he got his start in acting at the borough's Memorial Junior High School.[1] He reportedly only auditioned for the school play Oliver! to impress a girl. He said, "The girl didn't only happen to be cute, she was also the only girl at school that was shorter than me."[2] He received the lead part of Oliver Twist.

Schlatter was spotted by a casting director during a performance in 1987, and asked to audition for the Michael J. Fox drama Bright Lights, Big City. This led to his first film appearance, as the younger brother of Fox's character.

Schlatter starred in 1988's Heartbreak Hotel (directed by Chris Columbus) where his character kidnaps Elvis Presley in an effort to make his mother (Tuesday Weld) happy. His most highly acclaimed role in an American film was in 1988 comedy 18 Again!. His 18-year-old character swaps body and mind with his 81-year-old grandfather, played by George Burns. His work in this film was described as "displaying enormous range and extraordinary skill as an actor in his comedic starring role".[3]

In late 1995, Schlatter began his role as Dr. Travis on the television series Diagnosis: Murder, opposite iconic singer, actor and dancer, Dick Van Dyke, who was impressed with this relatively unknown television actor, by being a lifelong fan of his. His character was introduced as a comic relief character in the third season after Scott Baio's character moved to Colorado, and never returned. He remained on the show for the next six seasons, until the series was cancelled in 2001. During the series, he also wrote the episode "A Resting Place". After the series' ending, he and Van Dyke are still very good friends, and continues to visit him, Schlatter's wife Colleen and their three children.[4] He was also one of the participants at his acting mentor's 90th Birthday Party on December 13, 2015, at Disneyland, in Anaheim, California. Schlatter also said in a 2017 interview on Acast.com, if he is still friends with the then 91-year-old Van Dyke: "Yeah, I know! I probably owe him a call or he probably owes me a call... I don't know! It's been a little while. No, he's the best!" He also said, "Again, you know, he was never that guy, cause a lot of people would say, 'What advice do you use?' He never sat you down, and said, 'This is how is going to be; blah, blah, blah, this is; you just learn from listening. You know, everyday was a school time and you would go to school and you would learn by watching him; and the 1 thing that I learned, the most was, how to have joy, how to still love what you're doing at that age, you know, and to have the longevity and to figure out what matters and what doesn't matter, on what to complain about and what not to complain about and how is it? It's a job, in particular, those like this 9 to 5, who would 'get in' and 'get out.' I mean, he loved what he was doing, but never really worried about the thing that he couldn't change, everyday was kinda like slurs, wannabe prayers. But, yeah, I think watching him, in action, as an actor, he tried to borrow things from everybody, just has a human being, you know, 'Hey, I really like this guy, wish I could be more like that!' And so, he tried to be more like that; and in his acting takes, he tried to relax, how to breathe, how to whatever; and just how to be present and to be emotionally available, quicker. That's 1 thing I learned from him, too, I mean, listen, he's a comic genius, but the stuff that he did, was heartfelt stuff... was just really I mean, at times it was a goofy, hokey show, but, there were beautiful moments in that show, as well, and Dick is responsible for a lot of those. Again, he was just 100% present and emotionally available, at all times. 'You know, give me a moment, I need to get here, emotionally.' Just was always ready, was always ready; and me now (as an actor), 'You know, places or whatever!' That's my time to say, 'I need to be here, I need to tap into whatever it is to be emotionally available for every other actor, and whoever he asked, whoever has been a guest-star on that show has walked away, either (with a great story or great feeling); from working with Dick Van Dyke. He was so supportive and so wonderful and never disappointed; you know, that's the 1 thing to do. He's the real deal, the real article, he is the best, so selfless and here's a quick, little story: When I was auditioning for this show, there I was in the room with Dick and the producers; and goes, 'You look so familiar, Charlie, have we met before?' because he said, 'You look so familiar, are you sure we haven't met before?' And I go, 'Dude, you're Dick Van Dyke! If we met, I totally would've remember. I'm not lying to you! We did not meet!' And he said, 'I guess you're right!'"[5]

In early 2007, he appeared in the films Out at the Wedding and Resurrection Mary.

In 2014, Schlatter appeared as a guest star in the NCISseason 11 episode "Shooter", playing Lorin Davis. In 2015, he became the narrator for truTV's video clip series Top Funniest starting in season 3.

Schlatter also voiced Timmy in the Nickelodeon version of Winx Club. He guest starred on The Loud House as Dr. Feinstein in the episode "A Novel Idea" and as the DJ on the episode "Dance, Dance Resolution".

Schlatter was the voice of Major Raikov in Metal Gear Solid 3: Snake Eater as well as Raiden in the short film Metal Gear Raiden: Snake Eraser included on the second disk of the Metal Gear Solid 3: Subsistence game. He voiced Specter, the villain in the game Ape Escape 3. In 2012, he also voiced Finn in the game Sorcery.